1. What people mean by “Airbnb business model”

1.1 Airbnb’s own revenue model in one minute

Airbnb is a marketplace. It connects guests with hosts and takes a cut of each booking.

The company earns most of its revenue from service fees charged to hosts and guests. In the most common “split-fee” structure:

• Hosts pay a service fee of around 3 percent of the booking subtotal.
• Guests pay a separate service fee on top of the nightly price.

Airbnb also earns money from extra services, but this fee model is the core engine.

You do not need every detail for your business plan. What matters is that Airbnb is a commission platform. You bring good homes and good guest experiences. Airbnb brings demand and tools.

1.2 Your business model as a host or manager

As an entrepreneur, your business model is different. You decide:

• How you get properties into your portfolio.
• How you split revenue and costs with owners.
• How you systemise operations so you can scale.

The rest of this guide is about that side of the equation.

2. The building blocks of an Airbnb management business

Every successful Airbnb business, whether you are a solo co-host or a multi-city operator, rests on the same building blocks.

2.1 Inventory: properties you can host

You need a pipeline of homes to manage. That might be:

• Your own properties.
• Properties you lease on a rent-to-rent basis.
• Properties you manage on behalf of owners.

The quality, location and mix of these homes will shape everything else: pricing, seasonality, cleaning, and your ability to scale.

2.2 Demand: where bookings come from

In most markets, Airbnb provides a large share of demand. Many operators also use:

• Other OTAs (Booking.com, Vrbo, Expedia).
• Direct booking sites.
• Repeat and referral guests.

Your business model should not rely on one channel only. As you grow, think of Airbnb as your primary marketplace, not your only one.

2.3 Operations: the day-to-day work

Short-let operations include:

• Guest messaging and vetting.
• Check-ins and check-outs.
• Cleaning and laundry.
• Maintenance and emergency cover.

If you want to scale past a handful of homes, you cannot do all of this yourself. You will need:

• A clear playbook.
• Reliable cleaning and maintenance partners.
• Software for tasks, calendars and owner reporting.

2.4 Pricing and revenue management

You set nightly rates and minimum stays. Airbnb then applies service fees on top or alongside those prices.

Most professional hosts use some mix of:

• Dynamic pricing tools.
• Manual adjustments for events and seasonality.
• Minimum stay and gap-filling rules.

Getting this right is one of the biggest levers for profit. It is also one of the hardest things for owners to do on their own, which is why they look for partners.

2.5 Compliance and risk

Finally, every market has its own rules and risks:

• Planning and registration requirements for short lets.
• Safety standards and insurance conditions.
• Tax treatment for owners and managers.

These change over time. Treat this guide as context, not legal or tax advice, and always confirm local requirements with a professional adviser or your council.

3. The main Airbnb business models for entrepreneurs

There is no single “Airbnb franchise model”. Instead, you choose from a few main approaches and sometimes blend them.

3.1 Owner-operator

You own the property and list it on Airbnb.

• Revenue: You keep the booking revenue after Airbnb fees.
• Costs: Mortgage or rent, utilities, cleaning, maintenance, platform fees, any management costs.
• Risk: Property value risk and occupancy risk sit with you.
• Who it suits: Owners with capital who want to squeeze more value from their own homes.

3.2 Rent-to-rent / arbitrage

You lease properties from landlords at a fixed rent, then short let them on Airbnb and other platforms.

• Revenue: Short-let income from guests.
• Costs: Fixed lease payments, utilities, furnishings, cleaning, maintenance, platform fees.
• Risk: You still pay the landlord even when bookings are slow. This model carries higher cash flow risk.
• Who it suits: Confident operators with strong market knowledge and risk tolerance.

You can see how Houst positions this on our rent-to-rent pages, with tools and support for operators who want to scale without owning property.

3.3 Co-hosting / revenue-share management

You do not own or lease the property. Instead, you manage it for the owner on a revenue share.

• Revenue: A management fee, often a percentage of gross booking revenue.
• Costs: Your business overheads, staff, software, some operational costs you may include.
• Risk: Demand risk sits mostly with the owner, although your reputation depends on performance.
• Who it suits: People who are strong at operations, local business development and owner relationships.

This is often the most scalable model, because you are not tying up capital in leases or mortgages.

3.4 Partnering with Houst as a local operator

With Houst, you can plug into an established platform and systems while growing your own local management business.

• Revenue: You earn a share of management fees and related services on the homes in your portfolio.
• Support: Tech, pricing tools, operations playbooks, brand, training and central support.
• Focus: You concentrate on building your local portfolio and delivering great guest and owner experience.
• Who it suits: Ambitious operators who want to grow faster and avoid building everything from scratch.

Houst currently manages thousands of properties and millions of nights, across multiple countries. That scale lets partners benefit from tested systems and data, while keeping a local, on-the-ground presence.

Thinking about running Airbnbs for other people, not just your own place?

4. Example numbers: long-let vs short-let vs management fees

Numbers vary a lot by city, property type and season. Here is a simple, illustrative example just to show how the business models differ.

Imagine a one-bed flat in a good city location:

• Long-term rent to a single tenant:
  • Owner charges £1,500 per month.
  • After basic costs, they might keep around £1,300.
• Short-let, owner-operator:
  • Average £120 per night over a year.
  • Average 70 percent occupancy (around 255 nights).
  • Gross booking value: £30,600.
  • Less cleaning, utilities, supplies, platform fees and time.
  • Net profit might be higher than long-let, but with more work and more volatility.
• Short-let with a manager on a 20 percent fee:
  • Owner still receives most of the income.
  • Manager earns a share of revenue without owning the asset.

Again, these are not promises. They are simple, rounded numbers to help you think about:

• Where value is created.
• Who takes which risks.
• How your fee structure needs to reflect the work you do.

As you plan your own numbers, use local data and get professional input, especially on financing and tax.

Want help turning nightly rates and occupancy into a real business plan?

5. Pricing, Airbnb fees and AirCover in practice

5.1 Airbnb service fees in brief

Airbnb uses a couple of different fee structures, depending on how the host account is set up and whether you use a property management system.

The most common structure for individual hosts is the split-fee model:

• A host service fee, usually around 3 percent of the booking subtotal.
• A guest service fee, which Airbnb adds on top of your price.

Some professional hosts connected via software are moving to host-only fees, where a larger single fee is taken from the host side instead.

Because these details change, always check the current fee structure in your Airbnb account and in the official help centre.

5.2 Protection: AirCover for Hosts

Airbnb’s AirCover for Hosts provides damage protection and liability cover for each booking.

At the time of writing it includes:

• Up to 3 million USD in host damage protection.
• 1 million USD in host liability cover.
• Guest identity checks and reservation screening.

This is helpful, but it is not a substitute for your own insurance. As a manager, you should:

• Make sure owners maintain suitable home and landlord cover.
• Check how their policy treats short-term guests.
• Review AirCover’s exclusions before you rely on it.

6. Scaling your Airbnb business: from first listing to portfolio

Many people start with one or two listings. The challenge is scaling without burning out.

Key steps:

1. Document your processes
   Write down how you handle enquiries, bookings, cleaning, maintenance, pricing and owner updates.
2. Standardise your tech stack
   Use one main calendar, one set of messaging tools, and one system for task management and cleaners.
3. Build your local team
   Reliable cleaners and handymen are more valuable than the perfect logo. Invest in these relationships.
4. Create an owner offer and pipeline
   Decide who your ideal owners are, what you offer them, and how you will find them. For example: local networking, online campaigns, or partnering with estate agents.
5. Track your numbers
   Monitor revenue, occupancy, owner churn, average fee rate and time spent per property.

Houst partners use a shared platform and support team for many of these steps. That lets them focus on growth rather than reinventing every operational wheel.

7. Risks, regulations and common mistakes

Every Airbnb business model has risks. The most common ones are:

• Regulation: Planning rules and registration schemes for short lets are tightening in many cities. Always check local guidance before you scale.
• Over-leveraging on rent-to-rent: Fixed leases with optimistic forecasts can create cash flow problems if demand softens.
• Owner misalignment: Vague agreements about guest profiles, use of the property and reporting often lead to disputes.
• Underestimating operations: Many new operators think tech will solve everything. In reality, good people and clear processes matter more.

You cannot remove risk, but you can reduce it with good contracts, realistic forecasting and professional advice.

8. How Houst’s partnership model fits in

If you want to build an Airbnb management business but do not want to design every system from scratch, a partnership can shorten the learning curve.

With Houst’s partner and franchise style programmes:

• You plug into an existing brand and tech platform.
• You get training on pricing, operations and owner acquisition.
• You can show owners real data from a global portfolio, not just guesswork.
• You get support while you scale your local team and property count.

Partners have grown from a handful of homes to dozens in a short time by using this model, while keeping their own local business identity.

Ready to move from research to action?

9. FAQs: Airbnb business model for hosts and partners

Q1. Is Airbnb a good business model in 2025 and beyond?
It can be, but only if you understand your local market, run solid operations and respect regulations. In many cities, professional short-let operators still achieve strong returns for owners and healthy management fees for themselves. In other places, tight rules and weak demand make other models more attractive.

Q2. Do I need to own property to start an Airbnb business?
No. Many operators use co-hosting and management models where they do not own the assets. Rent-to-rent can also work, but it carries higher risk because you are locked into leases.

Q3. How much can an Airbnb business owner earn?
There is no standard number. Income depends on city, property type, fee rates, costs and how well you run the business. Some partners build part-time side income. Others grow to full-time portfolios with dozens of homes. Use realistic local assumptions and get help building a forecast.

Q4. Is this legal in my city?
Short-term letting rules differ by city and can change over time. Always check your local council or government guidance, and speak to a professional adviser, before you commit to a new model.

Q5. How is this article different from what Airbnb tells me?
Airbnb’s resources explain how to use the platform. This guide is about building the business behind your listings, including multiple models and the option of partnering with an existing operator like Houst.